You may have heard that inflation numbers came in higher than expected this month. This is important for housing because inflation numbers are what the federal reserve uses to decide to raise or lower interest rates.
Will this change the Fed’s intentions to lower rates at least 3 times this year?
There are a couple things to consider:
1- Housing was a significant driver of inflation increasing.
2- When housing is removed from the equation, inflation for everything else has been lower than expected.
3- Fed chair Jerome Powell said that housing inflation is due to not enough housing being built.
The fed held rates steady at this months meeting. But to me this still sounds promising. Interest rates can only do so much to curb inflation for a product with such scarcity. I believe rates will continue on their downward trajectory throughout the year.
Finding Home with Ellen Pitts, Realtor
You may have heard that inflation numbers came in higher than expected this month. This is important for housing because inflation numbers are what the federal reserve uses to decide to raise or lower interest rates.
Will this change the Fed’s intentions to lower rates at least 3 times this year?
There are a couple things to consider:
1- Housing was a significant driver of inflation increasing.
2- When housing is removed from the equation, inflation for everything else has been lower than expected.
3- Fed chair Jerome Powell said that housing inflation is due to not enough housing being built.
The fed held rates steady at this months meeting. But to me this still sounds promising. Interest rates can only do so much to curb inflation for a product with such scarcity. I believe rates will continue on their downward trajectory throughout the year.
What do you think?
1 year ago (edited) | [YT] | 8